TSX Tumbles Amid US-Canada Trade War and Middle East Turmoil
The TSX Composite Index took a hit on Wednesday, trading near 36,000, as tensions between the US and Canada escalated. The US government imposed new trade restrictions on Canadian goods, including alcoholic beverages, motorcycles, and dairy products. In retaliation to the 50% tariffs imposed last month on $20 billion of Canadian goods, Canadian companies such as Saputo lost over 1%, Canada Packers nearly 2%, and BRP about 1%. Meanwhile, oil prices surged due to intensifying Middle East hostilities, fueling inflation fears ahead of Friday's US CPI data. Banks also felt the pressure amid increased rate-hike expectations, with RBC, TD Bank, BMO, and Scotiabank losing more than 1% each.
However, the mining sector benefited from higher gold prices, with Agnico Eagle, Barrick, and WPM adding over 2%. Lithium Americas also saw a significant gain of over 6% after J.P. Morgan initiated coverage with an 'overweight' rating.